Analysis: Ratnamani Metals & Tubes Limited

Growth thesis

Ratnamani Metals & Tubes produces stainless steel and carbon steel pipes/tubes, with subsidiaries in bearing rings (Ravi Technoforge) and nuclear spooling solutions (RFSS). Key growth drivers include a Rs 2,160 crore order book (700 crores export), 20-25% spooling revenue growth from nuclear projects (550 crores order book), and 10-15% expansion in Ravi Technoforge. The Saudi cold-finishing plant (150-200 crores capex) and Odisha spiral mill will boost margins as utilization rises from 55-60% to 80%. With 16-18% standalone EBITDA margins and 20-25% margins in high-margin spooling, every incremental rupee of revenue drops to profit. Management targets Rs 4,800-5,000 crores standalone revenue in FY27, with consolidated revenue reaching Rs 7,500 crores in 2-3 years as fixed costs are absorbed.

Why is Ratnamani Metals & Tubes Limited stock rising?

• Order book as of May 1, 2026 stands at ~INR 2,160 crores with ~INR 700 crores from exports, providing strong revenue visibility.
• Subsidiary RTL targeting 15-20% year-on-year growth over the next 2-3 years supported by new forging lines and capacity expansion.
• RFSS new manufacturing facility expected to start contributing revenues from the second half of FY27, with capacity expansion to 3,000-4,000 tons enabling peak revenue of INR 600-650 crores.
• Saudi Arabia cold finishing line for stainless steel to begin trial production by March 2027 (possible 3-month spill), establishing local presence in GCC.
• New product developments include hydrogen-compliant pipelines, carbon capture, clad pipes, and electro-polished tubes to enter emerging segments.

Research report

companyname: Ratnamani Metals & Tubes Limited ticker: RATNAMANI sector: Steel Tubes and Pipes Ratnamani Metals & Tubes Limited is a multi-product, multi-location manufacturer of stainless steel, nickel alloy, titanium, and carbon steel tubes and pipes. The company was founded in 1983 and has operated for over four decades. It runs three manufacturing facilities in Gujarat: at Chhatral, Indrad (near Ahmedabad), and Bhimasar (near Gandhidham, Kutch). It also owns subsidiaries in the USA, UAE, Swi...

Catalysts

capex, margin expansion, new product segment, geographic expansion

Growth guidance

FY27 standalone revenue guided at INR4,800-5,000 crores; Ravi Technoforge (RTL) growth of 10-15% and RFSS growth of 20-25% in FY27 driven by new capacity utilization and order book execution

Management consistency

mixed